This company served a yummy snack of fast food to people In the world. A delicious fried chicken is becoming everyones favorites from It first Introduce until now. KFC also known as Kentucky Fried chicken Is a brand and operating segment called a concept of Yum! Brands since 1997 when that company was spun off from PepsiCo. KFC primarily sells chicken in form of pieces, wraps, salads and sandwiches while its primary focus is fried chicken, KFC also offers a line of roasted chicken product, side dishes and dessert.
KFC has come up with several strategies to position Its company. The strategies are marketing mix. Marketing mix Is generally accepted as the use and specification of the four P’s describing the strategic position of a product In the marketplace. The 4 P’s are product, Price, Place, and Promotion. Product is divided into categories like Product variation, Product differentiation, product innovation and product elimination.
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For the price it is subdivided into cost recovery pricing, penetration pricing and price skimming. For the place, the categories are distribution channel, direct sales, indirect sales and E-commerce.
Promotion is categorized Into individual communication, mass communication, brand management and corporate identity. Product Is anything that can be offered to a market to satisfy. In term of KFC, the main product is fried chicken served in various forms. KFC’s primary product is pressure fried chicken made with the original recipe. The other chicken offering garlic marinade and double dipping the chicken in flour before deep frying In a standard industrial kitchen type machine. KFC served its product according to geographic needs of customer.
In India KFC focuses how geographically Its customer demand different product. In North India Chicken Is the main selling product while in the south vegetables Items sell more than chicken. Other than that, KFC also has come up with strategy like product innovation, differentiation, and product variation. To promote the customer with their product, KFC always create a new product or they make an innovation to the old product. For example, in a time people is crazy about K-pop, KFC realize the chance then they innovate old recipe fried chicken into a new recipe.
K-pop Fried Chicken Is pored with a spicy sweet sauce. The taste Is very delicious and customer make want It again after try It for very first time. PLACE KFC has strengthen its marketing strategy with location as part of their strategy. They had choose a strategic location for their franchise or outlet. The strategies of KFC are ‘Free Home Delivery Strategy’ where they target on people who is very busy or having a hectic life. They provide free home delivery to offices and homes. Another target areas of KFC are country of hectic lifestyle and Individual who are going for fast food.
KFC has target to the people In urban areas. Urban areas are more populated therefore help with attracting higher revenues. urban people tend to choose higher quality of food compare to people from rural areas. KFC has strategy to and market and mostly populated by the young and those who are in hurry. The benefits of the location make KFC enjoys a large number of footfalls everyday. In addition they also have outlets close to non vegetarians customer. PRICE Price is any amount of money that customer have to pay while purchasing the product.
More broadly, price is the sum of all the values that consumers exchange for benefits of having or using the product or services. The price is depend on the demographic factors, and economically factor. For demographic factor, the key factor is age, gender, and Household size. Generally there is no age limit focus by the KFC. The target and focus is on each and every individual in a society KFC find its largest demographic in the young of any society. The price is affordable for from upper class to middle class or to a student of any society.
Household size play a vital role in the demographic factor. Generally they target whole families rather than single persons . This being the reason for the Family Meals which are basically bundled item served at a nominally cheaper rate. Economic factors has several factors to be consider. They are income and consumption behavior. Income is an important key factor for KFC. This factor decides which class is to be targeted. In the early rise of KFC, they focused on the upper class but slowly are introducing economy meals that attract the lower to the middle classes.
For consumption behavior, it estimates the behavior of people liking and disliking towards the pricing of the product. PRICING STRATEGY KFC has implemented several pricing strategy like market skimming, competition, and cost based. KFC globally enters the market using market skimming. Their product are priced high and target the middle to upper class people. Gradually they trick down the price focusing on the middle to lower class people to penetrate both sides of the market. Pricing base competitor is focus on the price of competitor product.
If competitor sell the same product with much lower price, they also need to lower the rice. In the case of KFC, FIED Chicken is its main selling point controls a monopoly over the Indian fast food market. It prices its burgers, French fries and soft beverages with relation to its competitors. Cost based is the pricing strategy to keep their product in different point of view. Pricing of the product includes the government tax and excise duty and then comes the final stage of determine the price of their product. The products are bit high priced according the market segment and it is also comparable to the standard of their product .
In the cost based method we include the variable fixed method. To place the position of its company, KFC has advertise and promote the product through Sales promotion, Advertising, Public Relations, Events and Experiences, Coupons, Discounts, and Bundled Packages. Promotion is the method used to inform and educate the chosen target audience about the organization and its product. At KFC, promotion is the main tool to bring all chicken lovers towards its delicious one of a kind product, the Fried Chicken. KFC has using reminder advertisement.
The company has use a slogan of finger linking good” as a wake up call to the consumer another important tool to strengthen an organizations image. KFC has become a sponsorship man to Australia Cricket Team and the colonel logo can be seen on their uniform throughout the matches. Other tools used by KFC to enhance their sales are premiums, exhibits, coupons and entertainment. All KFC outlets offer its customers with various form of incentives to buy its Chicken. Using coupon that one acquire after spending of fixed time, customers can enjoy the benefits of free meal or add ons.